Cocoa price decline may impact next season’s FOB rate – COCOBOD

Despite global cocoa prices hitting record highs over the past 18 months, Ghanaian farmers and the Ghana Cocoa Board (COCOBOD) have not seen the anticipated financial benefits. COCOBOD has reported losses following a sharp correction in international prices, fueling expectations of a possible cut in next year’s Free on Board (FOB) price.

The price rally that drove cocoa to historic highs did not translate into profits for farmers or COCOBOD, the board said. Ghana exports roughly 850,000 to one million metric tonnes of cocoa annually, with over 70% destined for European markets.

During the 2023/2024 season, around 330,000 tonnes of cocoa contracts went unsupplied, leading to rollovers for delivery and payment in subsequent years.

COCOBOD Chief Executive Officer, Randy Abbey, said: “It is unfortunate that Ghanaian farmers and COCOBOD did not benefit from the high cocoa prices on the global market over the past 18 months. Instead, the situation resulted in losses.”

He added that the global cocoa market has since reversed sharply, raising concerns about the sector’s revenue sustainability. “Prices have fallen from about US$12,000 to around US$5,000 per tonne.”

Cocoa, a key source of foreign exchange for Ghana, closed at US$5,845 per tonne on the international market on Friday, December 19, 2025.

The board warned that the sustained downturn could affect cocoa pricing in the next crop year. Abbey noted that while the declared FOB price for the current season stands at 72%, it may be reduced if global prices continue to fall.

“This year, the declared Free on Board (FOB) price was 72 per cent. If prices do not recover, there is likely to be a reduction next year as global market prices trend downward,” he said.

The situation highlights the ongoing challenges facing Ghana’s cocoa sector as it contends with volatile global commodity markets while striving to protect farmer incomes and stabilise the industry.